Chip sales down 25 pct in April: SIA

Global semiconductor sales declined 25 percent in April compared with a year ago but rose 6.4 percent over the previous month, the Semiconductor Industry Association (SIA) reported Monday.

Worldwide sales of semiconductors totaled 15.6 billion dollars in April compared with 20.9 billion dollars in April 2008 and 14.7 billion dollars last month, the SIA said.

March sales of 14.7 billion dollars were a 3.3 percent improvement on February sales of 14.2 billion dollars.

"Two consecutive months of sequential sales growth may be an indication of a return to more normal seasonal sales patterns in some market sectors, albeit at lower sales levels than last year," SIA president George Scalise said.

"The better-than-expected 6.4 percent sequential increase in April sales was driven by moderate improvements in a number of end-demand drivers and inventory replenishment," he said. "The PC market -- a major consumer of semiconductors -- has been stronger than predicted earlier in the year."

The SIA said PC unit sales were projected to decline by six percent compared with earlier forecasts of a 12-percent fall while cell phone unit sales were projected to fall seven percent instead of the previously forecast 15 percent.

PCs and cell phones account for nearly 60 percent of all semiconductor consumption, according to the SIA.

The SIA said the automotive market, which accounts for about seven percent of total semiconductor sales, remains weak.

It said that year-on-year, semiconductor sales were down 21.6 percent in the Americas in April, 35 percent lower in Europe, 39 percent lower in Japan and 17 percent lower in the rest of the Asia Pacific region.

Market research firm Gartner reported last week that worldwide semiconductor revenue was expected to decline by 22 percent this year to 198 billion dollars.

(c) 2009 AFP